Hydraulic Pressure Reducing and Relief ValveAutomotive electric solenoid hydraulic valve industry development prospects for local enterprises to enhance the competitiveness of high-end
The automotive electric solenoid hydraulic valve acts as an actuator within the automotive electronic control system. It plays a crucial role in managing the automatic transmission and engine operation. This type of valve offers several advantages, including being lightweight, having excellent safety performance, and possessing strong corrosion resistance. According to the different working methods, automotive solenoid hydraulic valve can be divided into pulse solenoid valve and switching solenoid valve two categories.
The upstream of the automotive solenoid valve industry chain consists of the supply of raw materials, which includes die casting, electronic components, sealing materials, and both metal and non-metallic materials. The production of automotive solenoid valves demands high-quality raw materials with specific properties such as wear resistance and high temperature resistance. Commonly used sealing materials in automotive solenoid valves include nitrile rubber (NBR), EPDM (ethylene propylene diene monomer), and fluorine rubber (FKM). In recent years, China’s production of NBR has shown a fluctuating growth trend, reaching an output of 236,000 tonnes in 2021, which marks a 10.4% increase year-on-year. Consequently, the automotive solenoid valve industry in China has experienced rapid development. In 2021, the industry’s output reached 380 million sets. This figure reflects an 8.6% increase year-on-year.
Moving to the middle reaches of the automotive solenoid valve industry chain, this segment encompasses product production and manufacturing. This includes components such as voltage-regulating electromagnetic needle valves, gear shift solenoid valves, and locking solenoid needle valves. Although China’s automotive solenoid valve industry began relatively late, local enterprises primarily focus on low-end product production and manufacturing. High-end products, however, still rely heavily on imports. Leading global automotive solenoid valve suppliers include several prominent companies. These include BorgWarner from the United States. Mitsubishi Electric Co., Ltd. and Hitachi Group are key players from Japan. Bosch Group is another major supplier from Germany. These companies not only lead the global market but also supply high-end automotive solenoid valves to China.
In terms of market competition, China’s automotive solenoid valve industry remains quite dispersed with low industry concentration. Key domestic manufacturers include Jiangsu Pacific Precision Forging Technology Co., Ltd., Zhejiang Sanhua Intelligent Control Co., Ltd., and others. Huacheng Navigation, for instance, focuses on high-end solenoid valve research and development and has established collaborations with several leading automobile manufacturers in China.
On the downstream side, the automotive solenoid valve industry chain serves the application field of the automotive manufacturing industry. This automotive manufacturing industry constitutes the primary demand side for automotive solenoid valves. China, being the world’s largest auto producer, saw its automobile production reach 9.765 million units in 2021, marking a 5.7% increase. Each vehicle typically requires at least 3.0 solenoid valves. Driven by this downstream demand, the development space for China’s automotive solenoid valve industry is expanding. According to the ‘2022-2027 Automotive Solenoid Valve Industry Market Depth Research and Investment Prospect Forecast Analysis Report’ released by Xinsiye Industry Research Centre, the market for automotive solenoid valves in China reached 8.36 billion yuan in 2021. This figure reflects a significant milestone in the industry. This reflects a 5.1% increase compared to the previous year.
Xinsiye industry analysts have noted that automotive solenoid valves are an essential component of the automotive electronic control system. They have observed that the production of these valves in China continues to rise. The expanding automotive industry boom is contributing to the growth of the automotive solenoid valve market size. However, despite these advancements, China’s high-end automotive solenoid valve market remains dominated by overseas brands due to technical barriers. The lack of core competitive advantages among local enterprises presents a significant challenge to the industry’s development.
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